My 1999

"The PE fund belongs to Hanhua, and by the way, it also includes Hongyan Fund. The S fund that purchased its shares also belongs to Hanhua and Hongyan.

Does this mean that Hanhua will charge LP two management fees and two profit sharing?"

A fat old man with big ears asked the other guests' questions.

Although Hanhua's return rate is not bad, if the fees are too outrageous, they will also weigh them in their hearts.

Xu Liang, who had expected someone to ask this question, smiled and said:

"Kunlun Technology, Facebook, and YouTube in the PE fund's investment portfolio are all the world's top and most high-quality Internet companies.

Can any investment company get on board these high-quality targets?

Even Sequoia Capital and Kleiner Perkins don't have the face to do so.

Today I can tell you clearly that Internet companies such as Kunlun Technology and Facebook will hardly raise funds again.

Even if someone wants to invest in them in the future, they can only buy stocks.

But by that time, the valuation will not be the current valuation.

Ordinary PE funds that can invest in any company such as Facebook or Kunlun Technology are enough to be called star funds.

And the S fund we plan to initiate and establish can be called a fund among star funds. Each target is carefully selected and difficult for general investment institutions to touch.

In the future, we will also consider including high-quality companies such as Workday, Hynix, and Penguin in the S fund's investment portfolio."

Xu Liang talked freely and kept pressing the remote control in his hand.

The big screen also showed the revenue and returns of Workday, Hynix, Penguin and other companies in 2006.

Although the people present had limited knowledge of the financial industry.

But they could also see their rapid development speed and bright development prospects from the clear growth curve.

"Please think about it.

If there are two funds in front of you for you to choose.

One has a return rate of only 10%, and the profit is split 28;

The other has a return rate of 1000%, and the profit is split 46.

Which one would you choose?

I think everyone will choose the second one like me.

Although the share is high, I can make more.

Good things must be expensive, and cheap things are naturally not good. This is a universal truth.

Whether it is Hanhua, Mr. Buffett's Berkshire Hathaway, or even KKR, all the star investment companies charge fees higher than the industry average."

The eyes of the people in the audience flickered.

Although they are called blue-blooded aristocrats, most of them can only be called rich, not super-rich.

Take Facebook for example, the latest valuation has exceeded 24 billion US dollars.

If there is a new round of financing, the participating party will definitely be in units of 1 billion US dollars.

Except for large institutions or super-rich people, they can't afford to invest at all.

Although Xu Liang didn't point this out, everyone present understood the hint.

To get the opportunity to invest in Facebook, everyone can only raise funds together and invest in the form of a fund.

As for why Xu Liang created an S fund, they guessed that he wanted to charge more.

After figuring out all this, many people showed an expression of sudden enlightenment.

Someone immediately asked: "Then Darren, what are the specific charges?"

"PE funds charge 2% management fees per year plus 30% excess profit sharing, and S funds charge the same fee model."

Someone immediately began to calculate in his mind that it was not Hanhua 20% + 30%, taking 50% of the profits, but there was another set of calculation formulas.

For example, Facebook is currently valued at 24 billion US dollars.

S funds purchase PE fund shares according to this valuation. In the future, when Facebook grows to a market value of 100 billion US dollars, it will sell and make a profit of 75 billion US dollars.

Of this profit, the GP of the PE fund takes 20%, and the S fund as the LP takes 80%, which is $60 billion.

This is not over yet. As the GP of the S fund, Hanhua will also take 30% of the $60 billion, and the remaining $42 billion is the profit of the LPs present.

Of the $75 billion in profit, Hanhua took $33 billion, which is about 44%.

This does not include the 2% annual management fee, and the share ratio will be even higher if it is included.

I guess the result has been calculated, and many people in the audience kept changing their faces.

They want to indirectly hold shares in high-quality companies such as Facebook and Kunlun Technology, but they feel painful about the high fee ratio.

Now it is 2007, and almost no one still thinks that Internet companies are a bunch of bubbles.

After Google went public, its stock price quadrupled, and its market value exceeded $100 billion.

Institutions that invested in Google before its listing made a lot of money, creating a new investment myth.

Although Bing's valuation after its listing is not as crazy as Google's, its current market value has exceeded $150 billion.

Facebook is growing faster and faster, and has attracted much attention from investment institutions.

It is already the world's most highly valued super unicorn.

So no one wants to give up the opportunity to invest in such a superstar.

They just want to make more money.

Someone asked unwillingly:

"Xu, the size of the S fund is as high as 20 billion US dollars. Can it directly buy all the target shares held by the PE fund?"

Xu Liang smiled slightly.

Sure enough, greed has no limit.

He said all the good things, and the descendants of these opium dealers only wanted to pay the management fee and profit share of a fund.

If you do what the other party said, the PE fund and the S fund will have nothing to do with each other. This is something he will never allow.

“The current valuation of Facebook has exceeded US$24 billion, and Hanhua and Hongyan are preparing to invest 20% of their equity in the S Fund.

This alone is $4.8 billion.

Kunlun Technology is currently the largest consumer electronics company in Asia, with a product line including laptops, PCs, USB flash drives and more than a dozen products.

And it has just released the Kunlun mobile phone, a cross-generational product.

From launch to now, we have received 1.74 million purchase applications online.

But this is just the beginning.

With the continuous improvement of offline channels and the launch of the 3G version of Kunlun mobile phones, the development of Kunlun Technology will become faster and faster.

Its valuation is also rising.

If you don’t have an accurate judgment about Kunlun Technology, you can refer to Apple.

Apple’s current market capitalization is $73 billion…”

Many people in the audience had disapproving looks on their faces.

Although Kunlun Technology is developing well, how can it possibly compare with Apple?

Of course, they did not openly question it. Kunlun mobile phone looks good. If it can succeed, even if it is not as good as Apple, it can still guarantee a market value of 30 to 40 billion US dollars.

"Global Tourism Group is currently China's largest tourism company and has the operating rights to 17 large-scale scenic spots.

It also owns four Universal Studios in the United States and China.

Total global revenue in 2006 exceeded US$7.3 billion.

The valuation is close to $19 billion.

Youtube……

NBA Warriors…

Premier League Manchester United…”

Xu Liang introduced the companies involved in the S Foundation one by one.

After the end.

Looking at the audience, Xu Liang said calmly:

"The combined equity of all companies is worth more than $100 billion.

Even if only 20% is placed in the S fund, a fund with a total raised capital of US$20 billion may not be able to acquire all the equity. "

The audience in the audience had different expressions.

Some are disapproving and some are in disbelief.

“Xu, is Facebook’s valuation of US$24 billion too high?

And the Kunlun Technology you mentioned, I don’t think it can reach the level of Apple. "

Xu Liang looked at the person who asked the question without getting angry.

“The valuation of Facebook is not what I say, but the valuation given by investment institutions.

Goldman Sachs and JP Morgan can endorse this valuation.

Moreover, Facebook has been developing rapidly, and now it should be more than 24 billion US dollars.

As for whether Kunlun Technology is comparable to Apple, if the controversy is too great, we can take it out temporarily.

What I need to emphasize is that all transactions will be evaluated by professional investment banks and accountants, so you don’t have to worry about losing money. "

Everyone in the audience, you look at me, I look at you, no one asked any more questions.

Xu Liang observed his words and took the opportunity to say:

“It has been seven years since Hanhua was established, and the company’s performance over the past seven years has won the trust of countless customers around the world.

Please believe that we cherish Hanhua's reputation more than you do.

‘Phoenix Fund’ is the first S fund we established, carrying our expectations for the global private equity secondary market.

We hope that this fund can create the best returns and help Hanhua become one of the world's top asset management companies.

In order to give everyone a basic guarantee, we have also specially formulated a guaranteed return rate of 10% per year.

Below this number, the S Fund only charges management fees and does not charge excess income sharing.

For the portion above 10%, we charge 30% of the excess profit share. "

Hearing this, many people felt as if they had taken a reassurance and felt much more at ease.

The fees are so high that they are on par with the top asset management institutions on Wall Street, so we have to give them some protection.

After waiting for a while, no one asked any more questions.

Xu Liang continued: "Do you have any questions?

If there's no problem, today's product promotion meeting ends here, and then it's entertainment time. "

No one responded to him, almost everyone had already made their choice in their hearts.

The return rate is more than 5 times in two years, the development speed and trend are comparable to Google and Bing’s Facebook equity, and the guaranteed return rate is 10%...

Anyone who is not a fool can see that this is an excellent investment opportunity.

It is worth mentioning that the duration of the S Fund is set at ten years.

The investment portfolio is not static and can be adjusted at any time.

For example, you can sell your Facebook shares midway and buy some Tesla and Android shares.

These blue-blood aristocrats have invested so much money in Hanhua and indirectly hold equity interests in many companies. Their family members have become spokespersons for the interests of companies such as Hanhua and Facebook.

At least when formulating relevant plans, when it comes to your own interests, you have to think twice.

No one said anything at all, Xu Liang continued with a smile:

"That's it, have a nice night everyone."

After finishing speaking, Xu Liang walked off the stage.

Blankfein came forward with a smile.

"Xu, what you said is good, the fundraising should be stable."

Not wanting to be left behind, Mai Jinheng gave Xu Liang a thumbs up and said with a smile:

"I'm a little moved by what you said."

Xu Liang smiled faintly:

"If it doesn't violate your internal regulations, you two can also buy some S fund shares."

Blancfan smiled and shook his head: "Xu, thank you for your kindness, but Goldman Sachs is a shareholder of Facebook and a partner of Hanhua. Let's try to avoid these sensitive behaviors."

Mack: "Xu, these are not important. Our cooperative relationship is as solid as a rock. JP Morgan will continue to support you."

Seeing that the two refused the benefits offered to them, Xu Liang didn't care. It was just a casual mention. It didn't matter whether he accepted it or not.

As long as he can bring benefits to the two major investment banks, he is the most loyal partner for the two CEOs.

Hanhua wants to develop in the United States, and the two of them are the most suitable partners.

"Xu, I have a question. Hanhua and Hongyan are not short of money, why do they want to create an S fund?"

Mack said.

Xu Liang: "It's nothing, just a protection.

Facebook is growing too fast and too big, so it needs more people to serve it.

The same is true for Kunlun Technology."

Ma Jinheng felt that he didn't tell the truth, but the other party obviously didn't want to talk more about this topic, and he was very tactful and didn't ask the truth.

Xu Liang guessed that this old fox must have guessed something.

After all, Hanhua and Hongyan's large-scale acquisition of CDs, although they were operated through more than 100 shell companies.

But the two giants are deeply rooted in the global financial market, especially in the United States.

I'm sure they can detect some clues.

The two stayed for a while, then left Xu Liang and went to a cocktail party with the blue-blooded nobles.

Xu Liang didn't join in the fun, and planned to think calmly for a while and take stock of the gains and losses.

After the establishment of Phoenix Fund, Facebook, Kunlun Technology, Hynix, Global Travel, Manchester United, Warriors and other unlisted companies can take out part of their equity in exchange for cash flow.

With this money, not only can they make a lot of money from the subprime mortgage crisis.

You can also pick up bargains during the crisis.

At that time, the Xu family in the United States, the Xu family in South Korea, etc., can also ensure the inheritance of family wealth through diversified investment.

Now it seems that although Facebook and Hynix have developed well, society is constantly developing, and prosperity will always end one day.

Taking advantage of the opportunity now, it is right to diversify investments like Gates.

In addition, the S fund holds the equity of these companies and naturally obtains the voting rights of the board of directors.

This ensures that while Facebook and Hynix obtain cash flow, the power of the company will not fall into the hands of others.

Finally, the most critical point.

The layout for the subprime mortgage crisis is about to close, and no accidents can happen at this critical juncture.

As long as all the dividends of the subprime mortgage crisis are eaten up, even if Facebook collapses, it will not have any impact on him.

Moreover, he also plans to make the S fund have a good return rate, which will make it more convenient to raise funds on a large scale in the United States in the future.

Maybe in the future, he can also lead this group of blue-blooded aristocrats to invest in Huaxia chips and support socialist construction.

Imagine that the family of a senior White House employee indirectly holds shares in a Chinese technology company, but the senior employee still has to give orders to suppress these companies, causing the family's investment to suffer heavy losses...

This feeling must be unpleasant, but it is definitely worth it.

Thinking of this, Xu Liang felt a little more expectant.

There is a lot to be done in the future.